Betterware to acquire Jafra in Mexico, U.S.
Mexican household products business Betterware has announced the acquisition of Jafra Cosmetics’ U.S, and Mexican operations from parent company, the Vorwerk Group.
The deal, expected to close in the first half of 2022, subject to antitrust and regulatory approval in Mexico, will be funded through a combination of $225 million in debt financing and $30 million cash.
The acquisition will allow Betterware to increase the diversification of its current operations by category to include beauty and personal care products, and by geography, in particular, in the U.S. market.
Currently, Betterware's product portfolio includes home organization, kitchen, commuting, laundry and cleaning, as well as other categories that include products and solutions for every corner of the household. Similarly to Jafra, they use consultant sales forces to sell their products.
Looking ahead, Betterware aims to elevate Jafra's revenue growth and profit potential through the adoption of its operating practices and infrastructure. It also plans to accelerate its digital transformation by leveraging Betterware's omni-channel capabilities to take advantage of the e-commerce opportunity in Mexico and the U.S.
"We are excited to announce the acquisition of Jafra and believe it represents a perfect strategic fit for Betterware,” said Luis G. Campos, executive chairman of betterware's board.
“We believe significant growth opportunity lies ahead for Jafra through continuation of their digital transformation, which will be accelerated by leveraging our scale and infrastructure, and we look forward to welcoming the entire Jafra team to our company.”
Jafra has a proven track record and a profitable business model with high cash flow generation, and over 65 years of experience in direct-selling. Jafra will operate as a separate subsidiary with its management team remaining focused on its operations and growth strategies.
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